Given that Gorton's is looking to make a projected $13 million investment into the Gloucester waterfront, the idea of the city extending an $18,672 tax increment financing — or TIF — agreement certainly looms as a sound investment.
And the extension of the local tax break is even more of a no-brainer when one considers the TIF is a five-year agreement starting in 2014, and tops out at $3,865 in its heftiest year.
Indeed, the granting of this TIF, under dramatically different circumstances than the 2009 break given to developer Sam Park and DeMoulas for Gloucester Crossing, represents the classic use of this financing process. That's because, by granting the Gorton's TIF at a minimal loss of tax revenue for the city, Gloucester officials have also given Gorton's far better eligibility to obtain state tax breaks for the project as well.
From the start, this Gorton's "expansion" has had the ring of an ideal investment for the city to back. For one thing, the expansion of the processing company's production line clearly represents a renewed commitment to staying in Gloucester, where Gorton's has been based since 1849.
The project also offers the city and its residents the best of both worlds — commercial growth that will bring some 30 jobs, yet growth that will not increase the company's waterfront footprint. The city's Zoning Board of Appeals had already approved the only change needed to carry out Gorton's physical expansion by granting a 6-foot exemption to its height restrictions.
Gloucester has not always had a reputation for working well with local businesses — and officials have, over the years, too often thrown up hurdles in the business community's path rather than easing roads to success. But this, on the heels of the November marine summit, and the push — however slow and painful — for I-4, C-2 site development are signs that's finally changing. That's good to know.
Gorton's is arguably Gloucester's best corporate neighbor — illustrated from the Gorton's Cancer Center at Addison Gilbert Hospital to the company's $50,000 support of the Newell Stadium renewal project.
This TIF is the least the city could do in return.
